GameStop shares fall as video game retailer faces competition, weak spending

 GameStop's shares fell more than 14% on Wednesday, as the brick-and-mortar video game retailer reported a decline in fourth-quarter revenue on the back of a spending slowdown and rising competition from e-commerce firms.

The Grapevine, Texas-based company also said late on Tuesday that it had cut an unspecified number of jobs, joining Japan's Sony and Electronic Arts in a bid to reduce costs as economic uncertainty hits discretionary spending.

GameStop is set to lose more than $700 million in its market capitalization if the losses hold.

As of Tuesday, GameStop's stock had fallen nearly 12% this year, as the retail and ecommerce environment remains intensely competitive for the company, which was once a mainstay of American malls.

The company has a total of 4,169 stores as of Feb. 3, compared with 4,413 in January last year.